Which of the following fiscal policy changes would be the most contractionary? O A. a $10 billion increase in taxes and a $30 billion cut in government spending. O B. a $40 billion increase in taxes. OC. a $30 billion increase in taxes and a $10 billion cut in government spending. O D. a $20 billion increase in taxes and a $20 billion cut in government spending.

Which of the following fiscal policy changes would be the most contractionary? O A. a $10 billion increase in taxes and a $30 billion cut in government spending. O B. a $40 billion increase in taxes. OC. a $30 billion increase in taxes and a $10 billion cut in government spending. O D. a $20 billion increase in taxes and a $20 billion cut in government spending.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section: Chapter Questions

Problem 1WNG

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